Analyzing Talon International (OTCMKTS:TALN) & Under Armour (NYSE:UAA)

Under Armour (NYSE:UAA) and Talon International (OTCMKTS:TALN) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Under Armour and Talon International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Under Armour	4	18	3	0	1.96
Talon International	0	0	0	0	0.00

Under Armour currently has a consensus price target of $6.58, suggesting a potential upside of 36.99%. Given Under Armour’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Under Armour is more favorable than Talon International.

Insider and Institutional Ownership

34.6% of Under Armour shares are owned by institutional investors. 15.6% of Under Armour shares are owned by insiders. Comparatively, 20.3% of Talon International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Under Armour and Talon International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Under Armour	1.99%	7.24%	3.06%
Talon International	N/A	N/A	N/A

Risk & Volatility

Under Armour has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Talon International has a beta of -0.7, meaning that its stock price is 170% less volatile than the S&P 500.

Valuation and Earnings

This table compares Under Armour and Talon International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Under Armour	$5.05 billion	0.41	-$201.27 million	($0.21)	-22.88
Talon International	$32.11 million	0.17	$220,000.00	N/A	N/A

Talon International has lower revenue, but higher earnings than Under Armour.

Summary

Under Armour beats Talon International on 10 of the 12 factors compared between the two stocks.

About Under Armour

Under Armour, Inc., together with its subsidiaries, engages developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and socks; and engages in brand licensing, digital subscription, advertising, and other digital business activities. It primarily offers its products under the UNDER ARMOUR, ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company was incorporated in 1996 and is headquartered in Baltimore, Maryland.

About Talon International

Talon International, Inc. manufactures and distributes apparel components and accessories to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. The company offers a line of metal, coil, and plastic zippers under the Talon brand name; apparel trim components, including tags, labels, buttons, rivets, leather patches, woven labels, heat transfer seals, tapes, ribbons, printed marketing material, polybasic, packing cartons, and hangers; Flex-It films, adhesive films, overlay films, seam sealing tapes; metal fasteners; stretch waistbands, shirt collars, and inner pocketing panels under the Tekfit brand, as well as packaging and other items; and specialty stretch technology for interlinings. It also provides outsourced trim design, sourcing, and management services, as well as supplies custom branded trim components. The company sells its products through its own sales force in the United States, Hong Kong, China, India, Indonesia, Vietnam, and Bangladesh, as well as through sales representatives in Europe. The company was formerly known as Tag-It Pacific, Inc. and changed its name to Talon International, Inc. in July 2007. Talon International, Inc. was founded in 1980 and is headquartered in Woodland Hills, California.